Good day! As the week continues, things aren't getting any more exciting. Volume dropped off even more on Tuesday and intraday the action was so choppy that the only patterns in the futures were a single breakout and a couple of pivots. Risk throughout the session was very high and even in individual stocks, most of the things actually moving were thin stocks you don't hear of very often. The "hot" names avoided the gainers and losers lists almost completely.

The day began on with a rather flat open as compared to Monday's close. From that point it continued Monday's late day correction until it came into the zone of the Avalanche setup from the prior afternoon. Then the downside move resumed, but was primarily confined to the NASDAQ. As the 11:00 ET reversal period hit, the market held support, but it was only temporary in the NASDAQ before that index broke lower. Both the SP500 and Dow Jones Ind. Ave., on the other hand, held the prior lows and continued a sideways correction by falling into a 15-60 minute triangle intraday.

The volume continued to decline in the market as the aptly named mid-day doldrums rolled on over noon. Just after 13:00 ET, the NASDAQ came into price support after three waves of selling on the 5 minute charts broke higher, triggering an early afternoon pivot that led to a strong breakout in the SP500 and Dow as well. The breakout ran all the way back to Monday's highs in the SP500 and Dow where the strong price resistance stopped the rally in it's tracks. At the same time, the NASDAQ came into its 30 minute 20 sma and trend channel resistance. All of these hitting at once with the 14:00 ET reversal period led to very highs odds of a pivot. When it came, it was much stronger than average given the extent of the rally that preceded it. Within no time, the market dropped all the way back to the support zone from which it had broken out of.

As this price zone hit again, right at the more minor reversal period of 14:30 ET, the market again tried to pivot. In the SP500 it took the form of a small 2 minute 2B pattern as it put in a very slightly lower low around 14:45 ET. The pace was never able to pick up, however, and the 5 minute 20 sma held. This pushed the market into a smaller range again on the 2-5 minute charts going into the close.

I am still finding more longs that shorts in my scanning on the daily charts, although they are still not of the same quality as a few weeks back. The NASDAQ is going to be the main con for an upside breakout simply because it has a much stronger downside pace on the daily, while the SP500 and Dow are basing at highs and favoring the upper ends of those ranges.

AAP from the $51.88 zone on the 4/25 hit new highs of $63.50. Trailing stop initiated for position trades. ASKJ has highs of $32.78 from the 5/18 breakout. Tight trailing stop initiated. Some hit. CI triggered on 5/26 with the break of $97.55 and has highs of $105.36. Trailing stops now initiated. RT, GR, and EL. OVTI broke the range lower to trigger trailing stops. WAG from 6/13 has support at its 20 day sma. USG and SPLS are still of interest for upside breakouts and SLXP is also of interest.

Economic Reports and Events
June 15: 8:30 am - Inventories, CPI, CPI core, Empire stat; 9:15 - Industrial production, Capacity utilization; 2:00 pm - Beige Book
June 16: 8:30 am - Jobless claims, Housing starts; 12:00 noon - Philly Fed
June 17: 8:30 am - Current account; 9:45 am - Consumer sentiment

Earnings Announcements of Interest
Only stocks with an average daily volume of 500K+ are listed. List may not be complete so be sure to always check your stocks' earnings dates before holding a position overnight. (A) = Earnings after the close, (B) = Earnings before the open, (?) = Earnings time not specified at the time of this writing
June 15: BSC (?), LAZ (?)
June 16: ADBE (A), CCL (?), GS (B), KBH (A), WGO (B)
June 17: CC (B)

Toni Hansen is President and Co-founder of the Bastiat Group, Inc., and runs the popular Trading From Main Street. She can be reached at Toni@tradingfrommainstreet.com.